China National Petroleum Corporation (CNPC), China's biggest oil producer, announced on Monday that it has made an offer of US$4.18 billion for PetroKazakhstan (PK) through its wholly owned subsidiary China National Petroleum Corporation International (CNPCI).
Registered in Canada, PK is a vertically integrated international energy company listed on the stock exchanges in the United States, Canada, the United Kingdom, Germany and Kazakhstan.
With an annual crude oil output of 7 million tons, the company's oil and gas assets are located in Kazakhstan, which shares a border with China.
According to company sources, CNPC has been involved in the oil and gas business in Kazakhstan for years, fostering business relations with the government of Kazakhstan and Kaz Munai Gaz, the national oil and gas company.
According to a CNPC press release, the acquisition is a strategic one for the expansion of CNPC's business in Kazakhstan, and it serves as part of CNPC's international development strategy.
CNPC's unique technological competitive strength and management experience will be fully utilized to upgrade the value of the assets acquired, and the acquisition would bring added value to shareholders of PetroKazakhstan, according to the press release.
(Xinhua News Agency August 23, 2005)
